New QV figures for the Gore District
The significant increase in residential property values does not automatically mean a significant increase in residential rates, says Gore District Council Chief Executive Stephen Parry.
New rating valuations, completed by QV, were released this week. The capital value of Gore District properties has increased, on average, by 31%.
The most significant increase has been in the residential sector, which reflects the strong demand for housing over the last couple of years.
On average, the value of a residential house increased by 58% since the District’s last revalution in 2019. The average price of a house is now $403,000.
In the rural sector, farms have experienced a 13.2% increase, while the value of lifestyle blocks has gone up by 43.9%.
Mr Parry said the Council’s capital-value based rating system means the value of a property is used to calculated the percentage paid for only certain activities. Capital value is not used to calculate total rates.
In Gore, about 25% of rates on a residential property is calculated on capital value. The remaining 75% is fixed charges.
“Those ratepayers whose properties have experienced an increase in value higher than the District average will pay a higher share of the valuation-based general and targeted rates,” he said.
The new property values will be applied to rates in the 2023/24 financial year.